Jubilee Platinum (LON:JLP) confirmed on Tuesday it was in advanced talks over a debt funding of around ZAR255 million (£12.9mln) to bring its two surface platinum processing plants into operation.
The discussions are with a major financial institution and although the funding has received credit approval in principal, there can be no guarantee that it will complete, Jubilee noted.
Last year, Jubilee secured a contract to process material at ASA Metal’s Dilokong chrome mine and it has a deal with the fourth largest ferrochrome producer in the world - Hernic.
The target is to process 80,000 tons per month delivering an estimated production of 42,000 ounces of PGM's per year.
Capital required for building both the surface platinum and chrome beneficiation processing plant is estimated at £13.71 million, while the working capital required to bring the Platinum Surface Projects to operation and to achieve positive earnings is estimated at £3.8 million.
The majority of the funding shortfall, will be covered through the previously announced sale of the company's non-platinum assets, subject to shareholder approval at a meeting this Friday (Aug 7).
Jubilee chief executive Leon Coetzer said: "The company continues to drive hard the time lines of both Platinum Surface Projects aim for the commissioning of both project in June 2016."
Shares added 1.62% to 4.70p.